September 24, 2003

DSM To Acquire Roche Vitamins & Fine Chemicals

DSM has announced that the US Federal Trade Commission, FTC, has approved its takeover of Roche Vitamins & Fine Chemicals. The transaction to be completed on Tuesday, September 30, 2003 in Switzerland, will see the acquisition take effect the next day Wednesday, October 1, 2003 with a press conference by DSM announcing further details.

DSM's announcement said that the acquisition had already received clearance from the European Commission (EC) on July 23, 2003. For this to happen, both EC and FTC authorities demanded that DSM and BASF dissolve their feed enzymes alliance in keep up with competition in this market segment.

DSM added that BASF will continue to operate independently in this business. However, DSM will continue to supply feed enzymes for BASF until such time when BASF is able to manufacture its own feed enzymes. Also, DSM will provide BASF the technology needed to set up such a production facility for feed enzymes. Employees from both companies are not expected to face adverse impact from the dissolution of the feed enzymes alliance, the company reported.

DSM, which originally developed the application of phytase in animal nutrition, will continue to participate in the feed enzymes business through Roche's successful ongoing alliance with Novozymes, which started in 2001. Sales have increased as a result, with expanding global markets for animal feed enzymes through collaboration and innovation.